Exeter City Council is on the verge of facing a financial crisis - and the closure of the city's Clifton Hill Sports Centre (pictured) is partially to blame.
David Hodgson, the council's chief finance officer, told the executive committee on Tuesday night that the projected year-end balance for the council's general fund is £2.6m, which was below the recommended minimum level of reserves of £3m for the council to hold.
Mr Hodgson also said income associated from the sports centre that had been budgeted for was not going to be received.
As senior council officers have said that the minimum level of reserves must be maintained, one-off in-year spending reductions will have to be found, although no details as to how the shortfall will be addressed has yet been determined.
Clifton Hill has been shut since March due to heavy snowfall during the Beast from the East, which caused a major leak in the roof. It was closed after repair bills were deemed too high.